Fort Worth Foreclosures
Find Homes Foreclosed in Fort Worth
What Does Foreclosed Mean?
Foreclosure is what happens when a homeowner fails to pay the mortgage.
More specifically, it’s a legal process by which the owner forfeits all rights to the property. If the owner can’t pay off the outstanding debt, or sell the property via short sale, the property then goes to a foreclosure auction. If the property doesn’t sell there, the lending institution takes possession of it.
What Happens During a Foreclosure
Stage 1: Missed payments
It all starts when the homeowner — the borrower — fails to make timely mortgage payments. Usually, it’s because they can’t, due to hardships such as unemployment, divorce, death or medical challenges.
If you’re in this tough situation, it’s essential that you talk to your lender as soon as possible. There are several options to help keep you in your home. The foreclosure process costs the lender a lot of money, and they want to avoid it just as much as you do.
Sometimes, a borrower may intentionally stop paying the mortgage because the property might be underwater (in other words, the amount of the mortgage exceeds the value of the home) or because he’s tired of managing the property.
Whatever the reason, the bottom line is that the borrower can’t or won’t meet the terms of the loan.
Stage 2: Public notice
After three to six months of missed payments, the lender records a public notice with the County Recorder’s Office, indicating the borrower has defaulted on the mortgage. In some states, this is called a Notice of Default (NOD); in others, it’s a list pendents — Latin for “suit pending.”
Depending on state law, the lender might be required to post the notice on the front door of the property. This official notice is intended to make borrowers aware they are in danger of losing all rights to the property and may be evicted from the premises. In other words, they’re in danger of foreclosure.
Stage 3: Pre-foreclosure
After receiving a NOD from the lender, the borrower enters a grace period known as pre-foreclosure. During this time — anywhere from 30 to 120 days, depending on local regulations — the borrower can work out an arrangement with the lender via a short sale or pay the outstanding amount owed.
If the borrower pays off the default during this phase, foreclosure ends and the borrower avoids home eviction and sale. If the default is not paid off, foreclosure continues.
Stage 4: Auction
If the default is not remedied by the prescribed deadline, the lender or its representative (referred to as the trustee) sets a date for the home to be sold at a foreclosure auction (sometimes referred to as a Trustee Sale). The Notice of Trustee’s Sale (NTS) is recorded with the County Recorder’s Office with notifications delivered to the borrower, posted on the property and printed in the newspaper. Auctions can be held on the steps of the county courthouse, in the trustee’s office, at a convention center across the country, and even at the property in foreclosure.
In many states, the borrower has the right of redemption (he can come up with the outstanding cash and stop the foreclosure process) up to the moment the home will be auctioned off.
At the auction, the home is sold to the highest bidder for cash payment. Because the pool of buyers who can afford to pay cash on the spot for a house is limited, many lenders make an agreement with the borrower (called a deed in lieu of foreclosure) to take the property back. Or, the bank buys it back at the auction.
Stage 5: Post-foreclosure
If a third party does not purchase the property at the foreclosure auction, the lender takes ownership of it and it becomes what is known as a bank-owned property or REO (real estate owned).
Bank-owned properties are sold in one of two ways. Most often, they are listed by a local real estate agent for sale on the open market. Also, some lenders prefer to sell their bank-owned properties at a liquidation auction, often held in auction houses or at convention centers.
Why Homes Become Foreclosed
The basic reason homes are foreclosed is because homeowners can no longer pay the mortgage. There are several reasons for this. First, people may have taken on too big a commitment in the first place, but were able to do so because of the attractive terms of a subprime mortgage. Before the housing crash, many people with low incomes and low credit scores were offered a subprime mortgage with low interest rates that made them seemingly affordable. When the interest rates and therefore the mortgage payments increased, they found that they didn’t have sufficient funds to make the payments.
Another reason for foreclosure is the state of the economy. In a boom economy, house prices increase but in a recession house prices can fall dramatically. That can mean that the value of the house turns out to be much less than the mortgage owed on it. In this situation, the homeowner often has little choice but to foreclose. House prices are also likely to fall in areas where there is an oversupply of newly built homes, which investors are now unable to sell due to the fall in the market.
Foreclosed Homes in North Fort Worth
4271 Lake Villas Dr
Fort Worth, TX 76137
Information is deemed reliable, but is not guaranteed. Distressed hardwood flooring. Golf Course community.
Foreclosed Homes in Central Fort Worth
271 Byron St
Fort Worth, TX 76114
This 880 square foot single family home has 2 bedrooms and 1.0 bathrooms. It is located at 271 BYRON ST FORT WORTH, Texas.
Foreclosed Homes in South Fort Worth
1120 April Springs Dr
Fort Worth, TX 76134
1 story brick home located in the Trails of Willow Creek subdivision. Built in 2004 and featuring: covered back patio, formal dining room, large den, open kitchen and an attached 2 car garage. Some TLC needed but this just might be the one you have been waiting for! Come by and look!
Foreclosed Homes in East Fort Worth
7401 Madeira Dr
Fort Worth, TX 76112
This property will be sold at a live foreclosure auction in Tarrant County, Texas on December 4, 2018 between the hours of 11:00 A.M. and 2:00 P.M. The sale will be held at the Tarrant County Courthouse, 100 W. Weatherford Street, Fort Worth, TX 76196.